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The Inland Revenue
What does the Inland Revenue do?
The Inland Revenue is responsible for the administration of income tax, capital gains tax, corporation tax, petroleum revenue tax, inheritance tax and stamp duty. With effect from 1st April 1999 it merged with the Contributions Agency (CA), which was responsible for National Insurance Contributions (NIC). This merger is intended to help to achieve the government's long term aim of greater alignment between tax and NICs rules.
Other duties that the Inland Revenue performs are:
- With effect from October 1999 it became be responsible for the payment of the Working Families Tax Credit and Disabled Persons' Tax Credit which replaced Family Credit and the Disability Working Allowance respectively.
- Making sure that all employers meet the National Minimum Wage rules.
- From next year it will also be responsible for the collection of student loan repayments.
Revenue's powers to obtain information
Once a blank tax return (or electronic filing notice) has been issued, the taxpayer is obliged to complete the form and submit it to the Inland Revenue.
In some circumstance, the Inland Revenue may, by notice, require the taxpayer to produce the documents backing up the items entered on the tax return. There will normally be a time limit of 30 days to produce the documents.
If the documents are not presented to the Inland Revenue within the specified time, it may obtain the power to enter the premises of the taxpayer and cease the relevant records. If the taxpayer has an accountant, they may also enter the accountant's premises and cease papers related to the taxpayer's affairs.
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